Transport is the physical movement of people and goods from one place to another. It helps bridge the gap between producers and consumers hence creating place utility.     

Importance of Transport to Business

  • Bridging the gap between producers and consumers/ linking consumers to producers-Transport links consumers to producers which enable the consumers to obtain the goods they need.
  • Employment creation-Transport helps in solving unemployment problem by creating job opportunities. For example, people may be employed as drivers, pilots, mechanics and road constructors.
  • Promotes specialization-Transport enables people to specialize in jobs they are best at. For example; producers would concentrate in production only while other people carry out distribution.

  • Making goods and services more useful-Through transport goods are moved from a place where they are least required to a place where they are most required thereby making them more useful.
  • Improving people‚Äôs standard of living-It enables consumers to get a variety of goods and services thereby improving the standards of living.
  • Availing a wide market for products-It helps producers to widen the markets for their products by enabling them access to areas they would otherwise not have accessed
  • Increased production/ facilitates mass production-Due to the wider market created through transport, producers are able to increase the volume of goods produced.
  • Avoiding wastage-Transport makes it possible for surplus goods to be disposed of by taking them to areas where they are required. Perishable goods such as flowers, fruits and vegetables can also be transported fast hence minimizing/ avoiding wastage.

  • Promoting development of industries-Through transport, raw materials can be taken to manufacturing industries and also finished goods to the market. Similarly, it promotes development of service industries such as tourism.
  • Adds value to goods and services- creates utility in goods by moving them from the point of production to where they are needed thereby adding their value.
  • Leads to the opening of new markets- Goods and services can be taken to new areas with ease.
  • It facilitates the movement of labour- people can easily move from where they stay to where they work


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